Hello Friends,
One of my friend got Demand raised by the CPC for the Salary ITR AY 2025-2026 because his employer not deposited the TDS. But the TDS got deducted from the employee. He claimed full TDS including the employer not paid.
He has proof such as Payslips, Bank Statement showing Salary Credits and Offer Letter having CTC.
Kindly guide how to deal with the situation. Already grievance filed with the AO, no solution.
Thanks in Advance.
The Income Tax Department cannot legally recover tax from an employee if the employer deducted the TDS but failed to deposit it. This is strictly prohibited by Section 205 of the IT Act and reinforced by CBDT OM F.No. ________. Since the initial AO grievance failed, the immediate next steps are to officially "Disagree with the Demand" on the e-filing portal, escalate the AO's inaction through the CPGRAMS portal, prepare to file a Form 35 appeal with the CIT(A), and serve a legal notice to the defaulting employer.
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